Sat, Feb 28, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Global macro dominates hedge fund returns and asset raising, while strong performing convertible arb continues to see outflows - Dow Jones Credit Suisse Hedge Fund Index

Tuesday, October 26, 2010
Opalesque Industry Update - Currency fluctuations and rising gold prices helped drive much of the global macro gains during September, cites a newly released update from the team at Dow Jones Credit Suisse Hedge Fund Index. The strategy saw gains of +2.72% during the month (+9.3% YTD) and has also been a favorite for investors returning to the hedge fund markets.

The best performing global macro fund on the DJCSHFI logged gains of 27% during September.

“On a nominal basis, the Global Macro and Event Driven sectors [event driven rose 3.20% in September, +6.3% YTD] have experienced the highest asset flows year-to-date. In the third quarter, event driven surpassed all of the other sectors with $4bn in asset flows. Nevertheless, the Global Macro sector has far surpassed the others on a year-to-date basis with $11bn in inflows. This demonstrates the desire of investors to invest their assets in tactical strategies, which have historically been able to withstand more volatile market corrections.”

Convertible arbitrage
One strategy that is still struggling to gain back investor confidence in convertible arbitrage, which has thus far returned 7.5% this year, and that gained +47.3% during 2009. It is also the only strategy on the DJCSHFI that can claim positive returns for every month during 2010 for every manager listed in the index. So far this year the best performing convertible arbitrage fund listed on the index has returned 65.7% and the worst performing fund listed has been flat.

However, even with this strong showing during 2010, these managers continue to watch assets leave their space. Convertible arb saw outflows during 3Q2010 (although admittedly they have slowed from the previous quarter), as the industry in total saw net inflows of approximately $14bn. To note, the other two strategies that saw outflows during 3Q2010 were dedicated short bias and emerging markets.

There is some sense that convertible arb redemptions continue to be from funds that remain gated, and are only flowing back out to investors now. Investors also continue to be gun shy of the strategy, which was the second worst performer during the 2008 crisis (returning -32% that year).

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  2. Adamas Asset Management and Ping An Insurance to co-manage $500m debt fund[more]

    Komfie Manalo, Opalesque Asia: Hong Kong-based Adamas Asset Management and Ping An Insurance Group, one of China’s largest financial institutions, have finalized a memorandum of und

  3. Opalesque Exclusive: dbSelect’s top ten FX strategies average almost 10% in January[more]

    Benedicte Gravrand, Opalesque Geneva: In one of Deutsche Asset & Wealth Management (AWM)’s hedge fund platforms, called dbSelect, a number of FX Strategies did very well in January. dbSelect is a managed investment platform for unf

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie